Assessment Task Task 1BSBRSK501 Manage risk
Report on risks
© 2015 Innovation and Business Business Industry Industry Skills oun!il oun!il "td#Modi$ed %uly %uly 2015 1 st edition version& 2 'age 1 o( 2)
Assessment Task Task 1BSBRSK501 Manage risk
Su*mission details Student+s name
Studen t no,
Assessor+s name Assessment site Assessment date#s The assessment assessment task is due on the date specifed by your assessor assessor.. Any changes to this arrangement must be approved by your assessor in writing. Submit this document with any required required evidence attached. See specifcations below or details.
© 2015 Innovation and Business Business Industry Industry Skills oun!il oun!il "td#Modi$ed %uly %uly 2015 1 st edition version& 2 'age 2 o( 2)
Assessment Task 1BSBRSK501 Manage risk
'er(orman!e o*-e!tive For this task you are required to decide the dangers/risks associated with opening up a new business branch within the eisting business organi!ation. They will be required to look at all the internal and eternal reasons/ risks and discuss will all the important people to put together a list o all dangers and risks.
© 2015 Innovation and Business Industry Skills oun!il "td#Modi$ed %uly 2015 1 st edition version& 2 'age . o( 2)
Assessment Task 1BSBRSK501 Manage risk
Assessment des!ription For the (ac)ille *ty +td simulated business scenario provided# you are required to assume/take on the role o ,risbane store Assistant (anager# Ash# who has -ust been promoted to be (anager o a new store. Ash has been tasked with conducting a risk management analysis o this new venture. There are three stages to this pro-ect 01 review# 21 analyse and plan# and 31 monitor. This pro-ect is divided into three assessment tasks as ollows Assessment Task 1
Assessment Task 2
Assessment Task .
"isk analysis report# action "isk review report# email to stakeholders and meeting with $%&plan and risk treatment (onitoring report
For this assessment task# you will need to review the simulated/pretend business4s risk management processes and decide the scope/range and ob-ectives/aims# taking into account stakeholders0/interested people and both internal and eternal environmental/your world actors/causes a5ecting the organisation. &nce you have gathered this inormation# you are to identiy risks and write a drat/eample report to the $%&. 6ou will meet with the $%& to discuss your report# seek support or your fndings/what you have ound# and approval to communicate risk management processes to relevant stakeholders/ interested people or their eedback/comments and participation/being part o.
0 Stake/older 7 a person or group with a direct interest# involvement# or investment in something © 2015 Innovation and Business Industry Skills oun!il "td#Modi$ed %uly 2015 1 st edition version& 2 'age o( 2)
Assessment Task 1BSBRSK501 Manage risk
'ro!edure 6ou will assume/take on the role o Ash# Assistant (anager o the ,risbane (ac)ille ca8# who has -ust been promoted to (anager o the new Toowoomba store. 9n preparation or the new venture# Ash has been tasked with conducting a risk management analysis o this pro-ect !erpt o( email (rom 3 'aula Kinski From $%& : *. ;inski To Assistant (anager : irectors has asked that the risks in this pro-ect be appropriately/correctly managed. 9 want you to undertake/start this task as it will give you signifcant/important insight into the store4s operations# it will ensure a smooth transition/move or ?urley4s $a8 sta5 into the (ac)ille amily and will encourage you to give ongoingcontinuous support or our risk management initiatives. 9 would like you to approach/tackle this task in three stages and meet with me at the end o each phase to review your work and discuss your plans or the subsequent/net phases. The three stages in this risk management task will include 0. "eview. 2. Analyse and plan. 3. (onitor. @ &nce 9 have received your risk review report# we will need to discuss the steps that you will take in the risk management process. "egards *. ;inski $%& (ac)ille $a8s
© 2015 Innovation and Business Industry Skills oun!il "td#Modi$ed %uly 2015 1 st edition version& 2 'age 5 o( 2)
Assessment Task 1BSBRSK501 Manage risk 0. "eview the provided (ac)ille simulated business scenario pretend business setting1 inormation and documentation provided in the Appendices o this task. 2. rite a report or the $%& your assessor1 that addresses the ollowing a. The e5ectiveness o the (ac)ille "isk (anagement Framework in supporting the principles and processes values B systems1 o risk management# set out in the risk management standard AS/NZS ISO 31000:2009. &utline the purpose and key elements/points o the standard in your discussion. b. 9dentiy and describe the scoperange o work1 o risk management required in your role. c. 9dentiy and describe the critical /serious important1 success actors/reasons# goals or ob-ectives or areas included in the scope. d. 9dentiy relevant related1 internal and eternal stakeholders interested parties1# their role in the risk management process# and any issues or concerns they have raised. $omplete the Table o Stakeholders Template provided in Appendi 3 o this task1 and attach to your report. e. $omplete a 'ST 2 analysis and a S43T . analysis to look at the associated risks. &utline the relevant legislation# regulations and standards including those at a local level# i.e. Toowoomba $ouncil1. i.e government and industrial rules and regulations1 . >escribe the methods o research that you used to complete your *%ST and S&T analysis. For eample# how you approached the simulated business inormationC legislation# regulations# etc.C and any other inormation or research on risk that applies to the scope o your report. g. $omplete the review o risk or the situation by summarising/short brie the scenario and identiying a list o risks to the pro-ect. ote& %nsure your report is written in a style appropriate/correctly or your stakeholders# or eample# using appropriate language and including appropriate illustrative/pictures material such as checklists# diagrams or Dow charts1 and attachments to support your summary. 2 'ST 7 A *%ST analysis is a business measurement tool. *%ST is an acronym or *olitical# %conomic# Social and Technological actors# which are used to assess the market or a business or organi!ational unit 3 S43T 6 a study undertaken by an organization to identify its internal strengths and weaknesses, as well as its external opportunities and threats © 2015 Innovation and Business Industry Skills oun!il "td#Modi$ed %uly 2015 1 st edition version& 2 'age 7 o( 2)
Assessment Task 1BSBRSK501 Manage risk 3. Submit your report as per the specifcations / terms on the net page. ,e sure to keep a copy or your records. E. Ater you have developed/written your report# write an email that is intended or the interested people identifed in Step 21. 6our email should clearly ask interested people / stakeholders or input/their comments# include a list o risks you have identifed and invite them to assist in identiying any additional risks. . Send the email to the $%& your assessor1 or review and request a meeting to discuss identifed risks and urther risk management processes. G. (eet with the $%& to a. discuss your fndings/results# particularly your understanding o the critical success actors and goals b. eplain the (ac)ille risk management process c. discuss how you can communicate with stakeholders about the risk management processes in this scenario/situation and invite them to participate in discussions to urther identiy risks associated with the scenario d. obtain the $%&4s support or ongoing risk management activities e. ask the $%& or input on additional risks. H. 9n dot7point bulleted1 orm# summarise/brieDy your discussion with the $%&. This should include any recommendations/suggestions they made to you. I. Submit the required documents or assessment as per the specifcations below. ,e sure to keep a copy or your records.
© 2015 Innovation and Business Industry Skills oun!il "td#Modi$ed %uly 2015 1 st edition version& 2 'age 8 o( 2)
Assessment Task 1BSBRSK501 Manage risk
Spe!i$!ations 6ou must provide J a risk review report# including a completed table o stakeholders J email communication to stakeholders J summary notes rom your meeting with the $%&.
6our assessor will be looking or evidence o J reading skills to gather# review# interpret/understand and
analyse/review tet7based business inormation rom a range/number o sources J written and oral/speech communication skills to organise and deliver
inormation to e5ectively communicate risk management processes to a range o stakeholders/interested people. J =umeracy/numbers7 mathematical skills to interpret/understand
mathematical data when reviewing and analysing scenario/setting7 situation business inormation J ability to work independently/reely as well as
collaboratively/together to make decisions about risk management J ability to interact/cooperate with others using appropriate
conventions/systems when communicating to# and consulting/discussing with# stakeholders/interested parties J ability/skill to sequence/in order and schedule/plan activities and
manage communication J ability to analyse relevant/appropriate inormation to identiy
scope/range o work# goals and ob-ectives and to evaluate/review options/other choices J ability to use amiliar/known digital technology to access/get to
inormation# document fndings/resutls and communicate them to stakeholders.
© 2015 Innovation and Business Industry Skills oun!il "td#Modi$ed %uly 2015 1 st edition version& 2 'age 9 o( 2)
Assessment Task 1BSBRSK501 Manage risk
Appendi 1& Ma!:ille 'ty "td simulated *usiness Ba!kground As part o their overall strategy in the Australian beverage market# (ac)ille *ty +td have developed a chain o ca8s in the $entral ,usiness >istrict $,>1 o ,risbane# o Sydney# =S. The ,oard o >irectors has made the decision to epand their operations in
mail (rom 3 'aula Kinski From $%& : *. ;inski To Assistant (anager : irectors has asked that the risks in this pro-ect be appropriately/properly managed. 9 want you to undertake/to take on this task as it will give you signifcant/important insight/awareness into the store4s operations# it will ensure a smooth transition/change or ?urley4s $a8 sta5 into the (ac)ille amily and will encourage you to give ongoing support or our risk management initiatives/e5orts. 9 would like you to approach/address this task in three stages. Ater the frst stage# we will meet to review your work and discuss your plans or the subsequent/ollowing phases/steps. The three stages in this risk management task will include 0. "eview. 2. Analyse and plan. 3. (onitor. © 2015 Innovation and Business Industry Skills oun!il "td#Modi$ed %uly 2015 1 st edition version& 2 'age ) o( 2)
Assessment Task 1BSBRSK501 Manage risk
6our primary risk management ocus/e5orts is directed to the ongoing/continuous operations o the Toowoomba ca8. The strategic/plan and investment/outlay o money risks o this pro-ect are being managed by the ,oard or this you are to consider any risks that could impact/e5ect on human resources management i.e work orce# sta5 etc1# fnancial operations# ?S# our supply chain supplier1 and the local governance/authority and overall compliance meeting the standards1 issues. (ac)ille has agreed to employ all eisting sta5 at ?urley4s $a8 on three months4 probation/trial . The current supervisor o ?urley4s# Lames (ansfeld# has been o5ered the position o 2nd 9n $harge and he has accepted. hile settlement on the purchase o the business is not or another ew weeks# the seller has agreed to grant/give us ull access/admission to the store4s operational processes and store inormation. 6ou should liaise/communicate weekly with the Finance# Audit and "isk (anagement FA"(1 $ommittee here at head oMce concerning the marketing# fnance and store management unctions that you are investigating/looking ater 7 into. 9 will set up a regular meeting or you. ?ead oMce has a report on a similar/same epansion/growth conducted by the =S team that may help you in your research. 6ou may need to review other statistical/numbers inormation and engage/take on specialists to help you with your investigation/study. The legal frm Noldsmith *artners are advising (ac)ille on the ?urley4s $a8 acquisition and would be available to help you with legal or any compliance issues. The landlord/owner o the shop in Toowoomba# "on +angord# is also a local councillor and has o5ered his assistance in getting established in Toowoomba. ?e has o5ered his availability or email address or correspondence communication# messages1 hen you have fnished your report# please name it according to our document naming conventions/standards and send it through. &nce 9 have received and discussed your risk review report# we can move onto the net stage o the risk management process. "egards *. ;inski $%& (ac)ille $a8s
Ma!:ille do!ument naming !onvention Files should be saved using the document name# the date and the document version. For eample# a meeting agenda or a meeting on 0 (arch 2K0E would be saved as O(eeting Agenda K0K32K0E v04.
© 2015 Innovation and Business Industry Skills oun!il "td#Modi$ed %uly 2015 1 st edition version& 2 'age 10 o( 2)
Assessment Task 1BSBRSK501 Manage risk
© 2015 Innovation and Business Industry Skills oun!il "td#Modi$ed %uly 2015 1 st edition version& 2 'age 11 o( 2)
Assessment Task 1BSBRSK501 Manage risk
Site visit ; e< Toourley+s a(?@ 6ou received permission rom *aula to travel to the Toowoomba store to start your research. *aula had cleared it with Lames (ansfeld# the current senior supervisor# who will spend most o the day with you helping answer your queries/inquiries. She also arranged or you to spend time with "on +angord# the store4s landlord.
Meeting o ,risbane. 6ou met with Lames# who took you through a complete overview/update o the store and the surrounding area. ?e was &; with the idea that you needed to take notes in preparation or a report. Ater lunch# you went over your notes to revise/review and edit key/important concerns and signifcant/important events that you had written down earlier otes (rom meeting
the city makes or easy access or local customers and high visibility or tourists. J The long drive rom Toowoomba to ,risbane would make attending
the weekly managers meeting diMcult considering many meetings did not fnish until into the evening ater rereshments. There are also manager training sessions that need to be completed over the net si months in with a ew other assistant managers. =avigating/going through the steep narrow climb up the range with trucks blocking the way is quite diMcult even in daylight hours. ,eing a competent/good driver you eel that it would be unlikely that you would be involved in an accident# but it still concerns/worries you considerably/quite a bit. J The two7hour delivery time would make resh pastry deliveries rom
the company4s central bakery plant impractical/unrealistic. The pastries would arrive ater the morning rush. These are a key part o the (ac)ille product assortment/variety. J There is also a concern about getting the company7branded
supplies through as quickly as a $,> ,risbane store could. J ?urley4s $a8 was a amily7run store and some amily members
were employed on the sta5. Lames was engaged/working by the amily to supervise/manage the operations o the store and (r ?urley as manager would authorise wages but anyone can authorise deliveries. © 2015 Innovation and Business Industry Skills oun!il "td#Modi$ed %uly 2015 1 st edition version& 2 'age 12 o( 2)
Assessment Task 1BSBRSK501 Manage risk
J hen asked about written policy and procedures manual# Lames
said that (r ?urley set the policy and procedures verbally/in words and on the ew days each week he was in the store he would show the sta5 how to do things the way he wanted them done. J ater use : ater wastage presentC the dishwasher is oten run
when only hal ullC ruit and vegetables are washed under a ast7 running tapC toilets all use the single Dush systemC Lames eplained that (r ?urley instructed the sta5 to keep the non7native/not grown locally in the country Dowering plants in the courtyard ully watered. P The dishwasher was always set to the ull wash setting and has a ater %Mciency +abelling and Standards Scheme %+S1 rating o 3. The more water eMcient :G star dishwashers cost about QG#KKK and above. P ual6us/ system would cost about QH#KK to upgrade. The store currently uses E0#KK litres a week. J Lames spoke about the ca8 attracting a large percentage o
retirees because o the easy access to buses and the store4s central location. J The same sta5 member that completed the cash register balancing
also completed the bank deposit orm and did the banking as well. The banking was not done every day and oten QE#KKK was kept on the premises overnight in the cash register. There was no sae. There is a bank two shops away but the ?urley amily bank is a couple o blocks away and there was not always time to do the banking. J Lames replied to your question about the possibility o break7ins#
saying that there was a KR chance o it happening in a year and the consequence/importance was moderate/reasonable. J =ot all takings rom the cash register by amily sta5 members were
recorded. C The ft7out looked old and unattractive in parts# with some chairs
unstable and broken and some parts o the worn carpet were simply taped over with gaDer 5 tape, J &ne o the sta5 was a qualifed che who had developed/setup an
innovative/new and popular range o rice wraps that were tasty# E ual Elus/ System 7 A dual7Dush toilet is a variation o the Dush toilet that uses two buttons or handles to Dush di5erent levels o water FaDer tape 7 strong cloth-backed waterproof adhesive tape © 2015 Innovation and Business Industry Skills oun!il "td#Modi$ed %uly 2015 1 st edition version& 2 'age 1. o( 2)
Assessment Task 1BSBRSK501 Manage risk
gourmet very high quality7desirable1 and healthy. =one o the other ca8s in the area o5ered these. J =o established/well known process or dealing with in-uries that
happened at work. J Lames gave a brochure about an innovative/new ro!en par6*ake
7
cooking system that was under the limit set by council or an ehaust system# yet it cooked resh bakery items in 3K minutes rom ro!en par7baked pastries. J The computer with all the store4s employee details# and fnancial
records was not password protected and anyone could access the inormation. J Lames4s response to your question about the lack o sales
promotion techniques was that he could not get the sta5 interested in the activity so he stopped trying to make it happen. J The employee detail orm requested inormation about the
employee4s entire past health issues. J The wage and superannuation records seemed to be incomplete#
with many calculations being worked out by the number o hours worked multiplied by a set Oin the hand4 amount. J Lames also provided a brochure about a company that could come
and set up iFi in the ca8 so that customers could use their computer notebooks and connect to the internet while they were dining in the ca8.
Meeting
in the surrounding shopping centres like ilsonton# $li5ord Nardens and ;7(art *la!a. J "on handed you an etract rom a government report# O%conomic
,rie4. J "on eplained that the ederal government was now introducing
G 'ar6*aking 7 is a cooking technique in which a bread or dough product is partially baked and then rapidly ro!en or storage. The raw dough is baked normally# but halted at about IKR o the normal cooking time# when it is rapidly cooled and ro!en © 2015 Innovation and Business Industry Skills oun!il "td#Modi$ed %uly 2015 1 st edition version& 2 'age 1 o( 2)
Assessment Task 1BSBRSK501 Manage risk
legislation government rules1 that backs up the local *y6la< 8 concerning eMcient water usage# particularly by industries. The current by7law has fnes o up to QK#KKK or ecessive water breaches/breaks7 penalties. "on did eplain that the council was allowing some time to Omake good4 under certain circumstances on a case7by7case basis. "on also agreed with the idea o installing a water tank in the courtyard or the ca8 to use and would help get it built. J "on eplained that Toowoomba was obviously a place or retirees
and the population was growing. J "on spoke about the ederal government4s =ational ,roadband
=etwork being rolled out in Toowoomba# which would allow eMcient and e5ective video streaming and teleconerencing. J "on spoke about a current by7law that is due or implementation/
putting into place 7 on the frst o net month# which will allow ca8s to epand their ootpath dining and so put more tables and chairs outside their premises. J "on also spoke o the act that representatives/agents o a large
international chain o co5ee shops had been making enquiries around town about opening a store in the Toowoomba $,>.
H By6"a
Assessment Task 1BSBRSK501 Manage risk
Meetings
Eirst tele!on(eren!e First# you met with the senior management team. At this teleconerence# you discussed issues raised by Lames (ansfeld and "on +angord and the report on previous =S epansion# which head oMce had given you Report into the acquisition and re-brandin o! the NS" e#pansion store . *aula said that there may be some things to learn rom the =S eperience. ;ey problems identifed in the report were as ollows 0. 9=T%"=A+ S6ST%(S +ack o internal controls# particularly over cash handling# monitoring and recording. 2. $&(*+9A=$% Failure to meet compliance standards in ?S# privacy and industrial relations law. 3. *&+9$6 +ack o written policy and procedures to guide sta5 in carrying out their duties. E. ,S9=%SS $+T"% +ack o a pro(essional *usiness !ulture 9 in the amily run business. . Failure o the business to monitor the eternal environment/outside a5airs and fnd opportunities and threats to the business. The team agreed that similar issues would pose a risk to the Toowoomba epansion.
Se!ond tele!on(eren!e 6ou then held a teleconerence with the FA"( $ommittee. At the teleconerence# you relayed the concerns o the senior management team. The FA"( $ommittee decided to allow you time to complete your review and then would include discussion o your review in the monthly ,oard o >irectors meeting.
I Business ulture : the way a business or proessional organisaiton operates with a sense o business ormalities. © 2015 Innovation and Business Industry Skills oun!il "td#Modi$ed %uly 2015 1 st edition version& 2 'age 17 o( 2)
Assessment Task 1BSBRSK501 Manage risk
Appendi 2& Ma!:ille 'ty "td ; Business plan =e!erpt@ Ma!:ille 'ty "td Business 'lan Mission (ac)ille $a8s serve competitively priced# high quality co5ee and gourmet ood in a sae and comortable ca87style environment. &ur riendly# well7trained sta5 provide superior customer service.
:ision (ac)ille aims to deliver our valued customers the very best ca87going eperience. 9n three years# the business will have established a presence across the
:alues J customer7ocus J saety J teamwork J perormance ecellence.
Strategi! dire!tions The strategic contet in which (ac)ille will achieve its mission and vision is through J engaging/dealing with customers and customer research J developing and improving products and quality J epansion o operations across
© 2015 Innovation and Business Industry Skills oun!il "td#Modi$ed %uly 2015 1 st edition version& 2 'age 18 o( 2)
Assessment Task 1BSBRSK501 Manage risk
Ma!:ille 'ty "td& Risk management poli!y Introdu!tion (ac)ille recognises that risk management is an essential/needed component o good management practice and is committed to ensuring/making sure the implementation/setting up o risk management processes that ocus/e5orts on the proactive/positive management o risks across the organisation. This risk management policy orms part o (ac)ille4s internal controls systems in the company1 and !orporate governan!e) how the company is managed and run1 arrangements. The risk management policy is designed to J identiy# evaluate# control and manage risks J ensure potential/possible threats/ears and opportunities are
identifed and managed J
inorm directors# senior management and sta5 members about their roles# responsibilities and reporting procedures with regards to risk management i.e what the responsibilities senior management have when issues o risk management happen1 J ensure risk management is an integral/essential part o planning at
all levels o the organisation.
'oli!y (ac)ille is committed to achieving its vision# business ob-ectives and quality ob-ectives by the proactive/positive management o risk at all levels o the organisation. (ac)ille will identiy# evaluate# control and manage risk throughout the organisation in accordance with the O(ac)ille "isk (anagement Framework4. See risk management strategy or ramework details.
Responsi*ility and Aut/ority >irectors# management and employees o (ac)ille have responsibility or implementing aspects/angles o this policy.
orporate governan!e 7 broadly reers to the mechanisms# processes and relations by which corporations are controlled and directed. © 2015 Innovation and Business Industry Skills oun!il "td#Modi$ed %uly 2015 1 st edition version& 2 'age 19 o( 2)
Assessment Task 1BSBRSK501 Manage risk
Role o( t/e ire!tors The >irectors have a governance/authority responsibility in the management o risk. This includes J determining which types o risk are acceptable and which are not J setting the standards and epectations o sta5 with respect to
conduct/behaviour J approving ma-or decisions a5ecting (ac)ille4s risk profle/outline or
eposure/dangers7 i.e fnancial or business ha!ards J monitoring the management o signifcant/important risks to reduce
the likelihood/possibility o potential organisational risks and threats or ailure J being satisfed that risks are being actively/keenly : positively
managed# with the appropriate/correct controls in place and working e5ectively J annual review o (ac)ille4s approach to risk management and
approval o changes or improvements to key/important elements/eatures7 items o its processes and procedures.
Role o( t/e Senior Management Team and Store Managers ;ey roles o the senior management team are to J implement/put together policies on risk management and internal
control where this is deemed/seems appropriate J identiy and evaluate areas o signifcant/important risks
potentially/possibly aced by (ac)ille or consideration by the >irectors J identiy areas where risk management is not adequately/properly
addressed/looked at and advise the >irectors accordingly J review and update the "isk (anagement Strategy J undertake an annual review o the e5ectiveness o systems o
internal control and provide an annual report to the >irectors# including a summary review and respective recommendations i.e update the >irectors on how well the internal systems are working or not1.
Role o( a(? mployees ;ey roles o employees are to J amiliarise/make aware themselves with the content/details o the
"isk (anagement *olicy and clariy/make clear any aspects/angles necessary with a senior team member J consider any risks they eel could impact on them meeting their
ob-ectives/aims and either manage the risk i it is in their control to do so# or inorm a management team member o their concerns © 2015 Innovation and Business Industry Skills oun!il "td#Modi$ed %uly 2015 1 st edition version& 2 'age 1) o( 2)
Assessment Task 1BSBRSK501 Manage risk J advise senior management# in the frst instance# or the ,oard o
>irectors# i concerned about any raud/scam or unethical/bad behaviour.
Ma!:ille Risk Management Erame
'oli!ies and pro!edures A series/number o policies underpin/support the internal control process. These policies are endorsed/supported by the directors and are implemented/put together and communicated by the senior management team to all sta5. These policies include J ?uman "esources *olicies
P Sta5 Travel *olicy P ?arassment *olicy P ?S *olicy P "eturn to ork *olicy P ork:+ie ,alance *olicy P %quity/>iscrimination/>iversity *olicy P *arental +eave *olicy P &rganisational $ulture *olicy 7 how the company operates proessionally J Financial *olicies
P ,ad >ebt *olicy P $ash "eserving *olicy P "evenue/%penditure "ecognition *olicy P Finance# Audit and "isk (anagement FA"(1 $ommittee Terms o "eerence# including delegations J $orporate Novernance *olicies
P ,oard *rotocol /practices © 2015 Innovation and Business Industry Skills oun!il "td#Modi$ed %uly 2015 1 st edition version& 2 'age 20 o( 2)
Assessment Task 1BSBRSK501 Manage risk P Sitting Eees 10 *olicy P >irectors "emuneration/salary *olicy.
Mont/ly reporting >ecisions to rectiy/f problems are made at regular meetings o the senior management team. $omprehensive/complete reporting at ,oard and Sub7committee meetings is designed to monitor key/important risks and their controls.
Business planning and *udgeting The business planning and budgeting/fnancial planning process is used to set ob-ectives/aims# agree on action plans# and allocate resources. *rogress towards meeting business plan ob-ectives is monitored regularly by the senior management team and by >irectors at ,oard meetings.
Risk management revie< The Finance# Audit and "isk (anagement FA"(1 $ommittee is required to report at ,oard meetings on internal controls. The FA"( $ommittee pays particular attention to risk management. 9t is the $%&4s responsibility to brie the >irectors periodically and as appropriate on the development o policies and procedures to ensure e5ective and eMcient operations# risk management strategies and implementation. 9n addition# the FA"( $ommittee oversees internal audit# eternal audit and management as required in its review o internal controls. The committee is thereore well placed to provide advice to the ,oard on the e5ectiveness o the internal control system# including (ac)ille4s strategy or the management o risk.
ternal audit The fnal audit o fnancial statements is controlled by an eternal !/artered a!!ountant 11 who provides eedback to the ,oard through the FA"( $ommittee.
0K Sitting Fees - is a fee paid for being part of a meeting and contributing to the meeting without having any company ownership – it’s a fee payable on a periodic basis throughout each year. The sitting fees covers all formal meetings, regardless of their duration, of the prescribed authority, including any preparation time and travel associated with the meetings
00 /artered A!!ountant 7 The title is an internationally recognised proessional designation. $hartered accountants work in all felds o business and fnance# including audit# taation# fnancial and general management. © 2015 Innovation and Business Industry Skills oun!il "td#Modi$ed %uly 2015 1 st edition version& 2 'age 21 o( 2)
Assessment Task 1BSBRSK501 Manage risk
'ro!edure& evelopment o( a Risk Management 'ro$le The ollowing outlines the process or developing a risk management profle.
1, sta*lis/ t/e !ontet& J >efne and identiy the environment/location# characteristics/eatures
and stakeholders interested parties# people# workers etc1# their goals and ob-ectives# and the scope/area o the specifc risk management process. J >evelop criteria/conditions against which risks are
evaluated/reviewed and identiy the structure/arrangement or risk management.
2, Identi(y and des!ri*e risks& J "isks are best identifed through a collaborative/working together
approach involving a !ross6se!tion12 o stakeholders. J All conceivable/possible risks must be considered. %nsure any
certainties/confrmations are identifed as problems and addressed in the risk management profle.
., ondu!t !urrent risk analysis& J An analysis o the risks is conducted to determine their causes# and
estimate their probability/chance and consequences/results. This analysis provides the basis or working on the Oright4 risks.
, ondu!t risk evaluation& J "isks are considered and prioritised/importance according to their
potential/possibility impact/e5ect and each risk is assessed/evaluated to determine its level o acceptability.
5, evelop and implement proposed risk treatments& J "isk treatments are developed to cost7e5ectively reduce# contain and
control risk. J Formal risk management reporting mechanisms are defned and
documented. J $ategorise the risk likelihood.
02 ross6se!tion& a typical or representative/portion sample o a larger group. © 2015 Innovation and Business Industry Skills oun!il "td#Modi$ed %uly 2015 1 st edition version& 2 'age 22 o( 2)
Assessment Task 1BSBRSK501 Manage risk
7, MonitorG reportG update and manage risks& J As risks change constantly# the risk profle is continuously monitored#
reviewed and updated by management. =ew risks may be identifed as more inormation becomes available and eisting risks may be eliminated through the e5ectiveness o the risk treatments/actions. J 9dentifed risks# and monitoring and management activities should be
recorded and stored as ollows P risks identifed through regular audit should be recorded on the "isk Audit +og P risk management activities should be recorded on the "isk (anagement "egister.
© 2015 Innovation and Business Industry Skills oun!il "td#Modi$ed %uly 2015 1 st edition version& 2 'age 2. o( 2)
Assessment Task 1BSBRSK501 Manage risk
Ma!:ille+s Risk Areas The ollowing are our broad areas where potential or risk to (ac)ille has been identifed. nder each area# eamples o possible risks are detailed.
3perational#organisational& J legal and regulatory compliance J technology J insurance J resources human# physical C logisti!s
1.
J marketing J product quality J communications J inrastructure# plant and equipment J customer interaction J market needs.
Einan!ial& J accountability J raud or thet C !apital investment
1
J interest rates J loss o income# unding/fnance.
Fovernan!e& J conduct o ,oard o >irectors C !oni!t o( interest
15
,
03 "ogisti!s 7 the planning and control o the Dow o goods and materials through an organi!ation or manuacturing process 0E apital Investment 7 unds invested in a firm or enterprise for the purposes of furthering its business ob!ectives
0 oni!t o( interest 7 a conDict between the public and private interests o somebody in an oMcial position © 2015 Innovation and Business Industry Skills oun!il "td#Modi$ed %uly 2015 1 st edition version& 2 'age 2 o( 2)
Assessment Task 1BSBRSK501 Manage risk
'ro-e!t management& J procedures and tools or pro-ect management J stakeholders : strength o relationships/conDict o interest J human resources i.e sta5# personnel1 J fnancial resources.
© 2015 Innovation and Business Industry Skills oun!il "td#Modi$ed %uly 2015 1 st edition version& 2 'age 25 o( 2)
Assessment Task 1BSBRSK501 Manage risk
Ma!:ille 'ty "td& Risk management strategy Introdu!tion (ac)ille recognises that risk management is an essential component/part o good management practice and is committed to the proactive/positive management o risks across the organisation. The strategy is designed to J identiy# evaluate/review# control and manage risks J ensure potential threats and opportunities are identifed and
managed J inorm directors# senior management and sta5 members about their
roles# responsibilities and reporting procedures with regards to risk management J ensure risk management is an integral/important part o planning at
all levels o the organisation.
Fuiding 'rin!iples J (ac)ille is committed to achieving its vision# business ob-ectives and
quality ob-ectives by the proactive management o risk at all levels o the organisation$ acknowledging that embracing/taking on innovative/new ideas and practices carries with it risks# but that these are identifable/known and measurable/can be calculated and thereore capable o being sub-ect to realistic risk mitigation/minimisation processes.
Responsi*ility and Aut/ority J The ,oard o >irectors have responsibility or ensuring that risk
management is in place. J The Finance# Audit and "isk (anagement FA"(1 $ommittee has the
responsibility o reviewing the "isk (anagement Action *lan on a si7 monthly basis. J The $%& and the senior management team have responsibility or
managing risk and advising the ,oard on appropriate controls. J The $%& and the senior management team support and implement
policies approved by the directors. 17
will be identifed$ closely monitored and action taken where necessary $ by the sta5 and directors.
J Key risk indi!ators
0G © 2015 Innovation and Business Industry Skills oun!il "td#Modi$ed %uly 2015 1 st edition version& 2 'age 27 o( 2)
Assessment Task 1BSBRSK501 Manage risk
Ma!:ille Risk Management Erame
internal control process. J "eporting >ecisions to rectiy/f problems are made at regular
meetings o the senior management team. J ,usiness planning and budgeting The business planning and
budgeting process is used to set ob-ectives# agree on action plans and allocate resources. *rogress towards meeting business plan ob-ectives is monitored regularly by the senior management team and by directors at ,oard meetings. $ontingency planning is undertaken as required. J "isk management review The FA"( $ommittee is required to report
at ,oard meetings on internal controls. J $%& The $%& has responsibility to brie the >irectors periodically
ater some time regularly1 and as appropriate on the development o policies and procedures to ensure e5ective and eMcient operations# risk management strategies and implementation. J %ternal audit The fnal audit o fnancial statements is controlled by
an eternal chartered accountant who provides eedback to the ,oard through the FA"( $ommittee.
e$nitions "isks are identifed on a scale o likelihood/possibility o occurring/happening in the net 02 months and assigning/handing over an impact/e5ect or consequence/outcome to the risk as high# medium or low. ?igh includes either a signifcant/important shortall/loss o around EKR in achieving budget or a signifcant reduction in ability to unction/work. (edium includes either a shortall o budget o between 0KR and 2KR or some reduction in unction. +ow indicates minor reductions in achieving budget or minimal reduction in perormance.
Key Risk Indi!ator =KRI@ 7 " #ey $isk %ndicator , also known as a #$%, is a measure used in management to indicate how risky an activity is. © 2015 Innovation and Business Industry Skills oun!il "td#Modi$ed %uly 2015 1 st edition version& 2 'age 28 o( 2)
Assessment Task 1BSBRSK501 Manage risk
Appendi .& Ta*le o( stake/olders template Stake/older
Internal#etern al
Role in pro!ess
Stake in pro!ess
© 2015 Innovation and Business Industry Skills oun!il "td#Modi$ed %uly 2015 1 st edition version& 2 'age 29 o( 2)
Assessment Task 1BSBRSK501 Manage risk
© 2015 Innovation and Business Industry Skills oun!il "td#Modi$ed %uly 2015 1 st edition version& 2 'age 2) o( 2)